Growth Prospects Dwell in Bank Sector

Emerging Markets,
Strong Economy Give
Some an Opportunity

LONDON -- The outlook for European banking stocks over the second half is clouded by rising interest rates and related slowing consumer and mortgage lending.

Yet amid the uncertainty, some banks -- and their stocks -- could benefit from strengthening economies and exposure to emerging-market growth, fund managers say. Banks from economies such as Italy and Germany, for instance, may be the next in line for growth.